Ever wonder how an insurance company would look at some of your favorite movie and television series characters? We might be nerds (who are we kidding…we’re huge nerds), but that’s exactly the question we wanted to ask Haven Life’s Brittney Burgett, who gives us some really enlightening answers. Not only do we find out information about how insurance companies view cartels, money laundering, and 1950’s office spaces (all funny and not shocking), we also talk frankly about contestable periods, health ratings, professional considerations, and more. If you’ve ever wondered how insurance companies think about you, this is a fun way to start.
In our headline segment, it turns out that millennials are changing the world, and because of that, maybe your portfolio as well. We’ll discuss one list from Kiplinger about 9 things millennials are changing (whether we like it or not). Here’s one example: buying a starter home? That’s not happening now like it has for past generations. Plus, during our second headline, one poll from the National Association of Plan Advisors suggests that target date fund recommendations are staying steady on the advisor side…but audiences are still often confused about the difference in how many funds operate. We’ll cover why target date funds continue to be a staple for many advisors AND discuss the rippling effects of millennial choices in the market during today’s headline segment.
Then, after we take a break for Doug’s combined movie and video game trivia, we’ll throw out the Haven Life line to “Go Blue,” who’s wondering if he should move his account around to save on expense ratios.
And during our letters segment we’ll say hello to attorney Leslie Tayne. Leslie has some fantastic knowledge on student loans, and she’ll be helping the basement answer two letters today about distrust with the income based repayment plan and student loan forgiveness plan.
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- 9 Things Millennials Are Changing Forever (Like It or Not) (Kiplinger)
- READER POLL: Target Date Targets Stay Steady (NAPA)
<> How Would Popular Characters Be Considered For Life Insurance? (with Brittney Burgett)
Learn more about Haven Life at: StackingBenjamins.com/HavenLife
<> Doug’s Trivia
- Video game developers from a young company called “ID” were working on an exciting new action game while watching a classic film, The Color of Money, starring Tom Cruise and Paul Newman. While searching for a title to call their new hit video game, they struck gold when Cruise walks into a pool hall carrying a case with his pool cue stick. Asked what’s in the case, Cruise answered with one word that would later become the name of the hit game. What did he answer?
<> Haven Life Line
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- “Go Blue” is totally invested in the stock market. He wants to move his account over to Vanguard to lower his expense ratios. However, the move will hit him with some taxes. Thoughts?
Want the guys to answer your question? You can call into the Haven Life Line and get your question answered on-air HERE.
A big thanks to Leslie Tayne for helping out with the letters today! You can fine more from Leslie at TayneLawGroup.com. Here are the letters we’ll discuss today:
Our first letter comes from Abbey, who has some questions about income driven repayment plans for student loans:
Hey guys, I just listened to your recent show with David Carlson about student loans. I was recently helping a friend with taxes and learned something new about the income driven repayment plans that is kind of a big deal. Apparently, while the loans are deferred, the interest doesn’t accrue.
However, if the borrower leaves the repayment plan, switches plans, or eventually makes too much money and gets kicked out of the plan, the full amount of accrued interest is capitalized. So suddenly their total balance increases substantially.
And, oh yeah, the interest is now part of principal, so paying off early will not reduce the interest payable… have you heard of this happening? Am I understanding this correctly? Thanks!
Our second letter comes to us from Eddie, who expresses his own doubts about the student loan forgiveness plan:
Hi Joe and OG,
I question that I am sure a small subset of your listeners (professional students) have. I am finally about to finish training as a physician and my income is about to multiply 4-6 times depending on where I work and if my wife starts residency as well. We currently have 800 grand in student debt (600 government at about 6.5%) and she had to do another 200 at 8-11% private. Only other obligations are our cars (about 10 grand 4%, no intent on upgrading to better cars with this debt) and our mortgage on our condo.
We plan on renting our condo and moving to a town home temporarily to save money/use as a rental property once we pay down debt and can afford our next home using a physicians mortgage. Other than maximizing my tax free contributions to 401k and maybe an HSA (I will not qualify for roth), should I be investing anywhere else or just pay down this debt?
Obviously refinance higher interest/pay that down first. I do not have an emergency fund yet, but do have about 50 grand worth of credit line. Student loan amounts that high are an “emergency” so I was going to get that under control prior to starting a fund.
I also don’t trust the loan forgiveness program and the jobs that qualify for that will drop my income at least 6 figures. Plus the tax bill on that would be INSANE. Am I crazy for not considering loan forgiveness? I have insured myself appropriately as well (umbrella, car, life, home with adequate coverage) as an FYI.